Taiwan mutual fund assets hits record, new launches slow on Covid-19

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Taiwan’s mutual fund assets grew 10.1% to a record US$317 billion between January and October this year, driven by exchange-traded funds which were buoyed by the domestic stock market gains, according to data compiled by Keystone Intelligence as of end-October.

More than half the assets – 55% or $175 billion – were in 993 Taiwan-domiciled onshore public funds, and 45% or $142 billion in 1,011 offshore funds.

New onshore fund launches slowed again because of Covid-19. There were 57 new funds, including 11 each of international multi-assets and international bond funds, launched between January and October versus 65 in in the first ten months of 2020. Pre-pandemic, there were 145 launches in the same period of 2019, swelling from 95 in 2018.

Fund consolidation was heavy this year due to lack of scale. This included liquidations and mergers.

Equity ETFs benefitted the most among the onshore funds, thanks to Taiwan’s rising stock market. Of the total $7.8 billion net inflows from January through October, 73% went into domestic equity ETFs and 27% into international equity ETFs.

The top three funds were Yuanta Taiwan ETF with $1.67 billion of net sales, Yuanta Taiwan Dividend Plus ETF, $1.52 billion, and CTBC Hang Seng China Dividend Yield ETF, $770 million.

*Donna Chen is with Taipei-based investment consulting firm Keystone Intelligence.

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